Dollar bulls take a break as greenback tumbles to two-week low

The United States dollar tumbled to a two-week low against a basket of major currencies late Wednesday after the US and the European Union agreed on steps to de-escalate trade tensions.

The downside was complimented by disappointing new homes sales data from the United States, which encouraged sellers to attack. There is also a suspicion that the dollar’s depreciation could be attributed to a bout of profit taking ahead of Friday’s highly anticipated US GDP report.

While the dollar could depreciate further in the near term, market speculation of higher US interest rates this year is likely to limit the downside losses.

Focusing on the technical picture, the dollar Index has scope to hit 94.00 in the near term.

On the other hand, oil prices edged higher Thursday morning after the Energy Information Administration reported a large drawdown in US Crude inventories. A softer US dollar has also complemented the upside with prices trading around

$69.30 as of writing.

Focusing purely on the technical picture, WTI Crude could appreciate back towards $70.00 if bulls are able to conquer the $69.60 level.